If you’ve got 20% down just about every mortgage calculator online will work great. You can find calculators with a simple Google search, any decent local mortgage company / bank and many Realtor websites too. However... if you have less than 20% to put down I have yet to find an online mortgage calculator that will help a home shopper as effectively as a qualified licensed "mortgage guy".
BUT STEVE…WHY DON’T THEY WORK?
Most often times borrowers need to make sure they’re including everything that will be in their housing payment. And be certain… the underwriter is going to use any/all of the following into their calculations for qualifying
1. Principal
2. Interest
3. Taxes
4. Home Owners Insurance
5. Up front "funding fees" / financed Mortgage Insurance for government loans
6. Mortgage Insurance in any/all the forms it may be calculated
7. Association dues if applicable
8. HO6 insurance or “walls in” insurance for a condo/townhome.
SO WHAT SHOULD I DO?
1. Assume any online calculator is close and round up and cross your fingers and be conservative.
2. Talk to a professional “mortgage guy” to help you confirm everything that may be in your “total housing payment”
We know you don’t actually want to get on the phone to call a professional or stop by an office to go through the whole “pre-approval process”. The internet is SO EASY to see properties and get absolutely everything… J
But a little mistake in calculating your expected housing payment could be turn into a huge disappointment in what you’ve THOUGHT you could afford vs the price range of homes you SHOULD be looking at.
Happy Home Shopping!!
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